The UK manufacturing division of upholstered furniture maker La-Z-Boy has reported a decline in turnover.
According to its latest filed accounts for the year ended 27 April 2024, total sales fell 22.7% to £25.3m from £32.7m in 2023.
Pre-tax losses resulted at £424,000, widening from its loss of £172,000. Net assets remained strong at £4.86m.
La-Z-Boy Manufacturing UK said: “In 2024 revenue reduced by £7.4m. The main reason for the decrease in revenue was due to the cost-of-living crisis for consumers in the UK, this resulted in a reduction in demand for big ticket items, which affected the furniture industry as a whole.
“Despite the downturn in revenue, the company continued to show excellent cost management and made further improvements with internal systems and production processes increasing efficiencies.
“Due to this, the company saw an increase in gross margin to 9.9% (from 9.3%), this was mainly attributed to the company’s directors acting swiftly to reduce labour costs, as well as excellent control over purchasing decisions.”